While the Birmingham, Ala.-based bookseller grew its fourth quarter sales by 10.7% over the previous year, it still posted a slight decline in sales overall for the year. The demise of Borders may not have buoyed the U.S.’s now-second-largest bricks-and-mortar retail bookseller as much as expected, although it was not mentioned in the company’s press release.
The company also announced a new CEO, Terrance G. Finley, who will be replacing Clyde B. Anderson. Finley was previously the president and chief operating officer.
Books-A-Million, Inc. Announces Fourth Quarter Results
Total Sales Increase 10.7%
BIRMINGHAM, Ala.–(BUSINESS WIRE)–Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the fourth quarter and 52-week period ended January 28, 2012. Net sales from continuing operations for the 13-week period ended January 28, 2012 increased 10.7% to $166.9 million from net sales of $150.8 million in the year-earlier period. Comparable store sales for the fourth quarter declined 5.7%, compared with the 13-week period in the prior year. Net income from continuing operations for the fourth quarter was $7.6 million, or $0.48 per diluted share, compared with net income from continuing operations of $6.7 million, or $0.43 per diluted share, in the year-earlier period. During the quarter, the company incurred costs of $1.6 million related to the closing of 21 underperforming locations and the opening of 41 new BAM! stores that occurred in October and November. These costs total $5.4 million for the 52-week period ended January 28, 2012.
For the 52-week period ended January 28, 2012, net sales from continuing operations decreased 3.6% to $468.5 million from net sales from continuing operations of $486.1 million in the year-earlier period. Comparable store sales declined 9.5%, compared with the same period in the prior year. For the 52-week period ended January 28, 2012, the Company reported net loss from continuing operations of $2.5 million, or ($0.16) per diluted share, compared with net income from continuing operations of $9.0 million, or $0.57 per diluted share, in the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, “We were pleased with the holiday season and the improved sales results in the fourth quarter. Our investments in the new stores yielded our strongest fourth quarter performance in years, our new businesses performed well and the erosion of the core book business slowed from the pace we faced earlier in the year. Our balance sheet remains strong, and we are focused on establishing BAM! stores as the premiere destination for books, toys, tech and more.”
“Furthermore,” Mr. Anderson continued, “I am pleased to announce that Terrance G. Finley has been named Chief Executive Officer of the Company, in addition to his responsibilities as President and Chief Operating Officer, effective March 13, 2012. Terry has been my trusted colleague for many years and he has provided extraordinary leadership since joining Books-A-Million in 1992. First as the EVP of Merchandising, and then as our President and Chief Operating Officer, he has demonstrated the ability to help guide our Company as we have grown. I will remain as the Company’s Executive Chairman of the Board.”
The results for 13-weeks and 52-weeks ended January 29, 2011, contain certain insignificant reclassifications necessary to conform to the presentation of the 13-weeks and 52-weeks ended January 28, 2012.
ABOUT BOOKS-A-MILLION, INC.
Books-A-Million, Inc. is one of the nation’s leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 256 stores in 31 states and the District of Columbia. The Company operates large superstores under the names Books-A-Million, BAM!, Books & Co. and 2nd & Charles and traditional bookstores operating under the names Bookland and Books-A-Million. The common stock of Books-A-Million, Inc. is traded on the NASDAQ Global Select Market under the symbol BAMM. For more information, visit the Company’s corporate website at www.booksamillioninc.com.
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